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EXX - Exxaro Resources - News Release - Medupi Coal Supply and off-take agreement update EXXARO RESOURCES LIMITED (Incorporated in the Republic of South Africa) (Registration Number: 2000/011076/06) JSE share code: EXX ISIN code: ZAE000084992 ADR code: EXXAY ("Exxaro") NEWS RELEASE - MEDUPI COAL SUPPLY AND OFF-TAKE AGREEMENT UPDATE Exxaro Coal (Pty) Limited, a wholly owned subsidiary of diversified South African-based resources group Exxaro, and Eskom Holdings Limited ("Eskom"), signed the Medupi Coal Supply and Off-take Agreement ("CSA") on 19 September 2008. In terms of the CSA, Exxaro will supply an average of 14.6 million tonnes per annum of power station grade coal to Eskom`s new Medupi base-load power station, under construction near Lephalale, Limpopo province, from a brownfields expansion project at Exxaro`s Grootegeluk mine ("Grootegeluk Medupi Expansion Project"). Exxaro`s capital expenditure for the Grootegeluk Medupi Expansion Project is estimated at R9 billion and delivery of first coal was planned to commence in the fourth quarter of 2011 with a ramp-up to full production by 2014. Exxaro has received notice from Eskom that it is seeking to review certain commercial terms contained in the CSA, including the coal price escalation mechanism and the coal delivery ramp-up. Indications are that the date for first coal delivery to the power station, in terms of the CSA, has been confirmed to be during the first half of 2012, aligned to the commercial start-up of the power station. Exxaro is in separate discussion with Eskom with regard to the delivery of early coal from July 2011, to be used by the power station for pre- commissioning tests and the creation of stock-piles. Pending the outcome of the review process, Exxaro will temporarily suspend its funding programme as well as the placement of additional contracts associated with the Grootegeluk Medupi Expansion Project. Addenda to the CSA have been signed by the parties to extend the fulfilment of various suspensive conditions. Currently all suspensive conditions are to be fulfilled by 26 February 2010. Ends Editor`s Note:Exxaro is one of the largest South African-based diversified resources groups, with interests in the coal, mineral sands, base metals, industrial minerals and iron ore commodities. www.exxaro.com Enquiries: Wim de Klerk Financial Director Tel: + 27 (0) 12 307 4848 Mobile: +27 (0) 82 652 5145 Email: wim.deklerk@exxaro.com Pretoria 8 December 2009 Sponsor Deutsche Securities (SA) (Proprietary) Limited Date: 08/12/2009 08:09:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
